Van Tharp
Van Tharp is a trading coach and a psychologist. He has been helping people learn how to be successful traders since 1982.his style is to help people overcome psychological behaviours that interfere with their success in the financial markets , and develop methods that work for them.
as according to Dr Tharp. Tharp is of the opinion that the word fear carries with it a large amount of fear.the word risk suggests loss therefore whenver people hear this word they tend to hesitate and makes choices based on emotion rather then logic.to conquer this habit ,Dr. the two rules for risk tharp teaches people are :.before entering a postion in the market it is in your best interest to first ascertain the postion in which you will exit. And, 2.lets your profits increase in value and shorten your losses.
Your exit should be planned according to the amount of risk you are willing to ,take according to Tharp risk is the specific amount of money that a person is willing to lose.Many people suffer losses as they do not have a proper exit strategy and get caught up in the upward wave. Dr. Tharp teaches people to plan their exits first before investing , this can be done by placing trailing stops on their purchases.the can avoid disaster by doing so.
During his years as a trading coach, Dr. Tharp has observed that there are numerous trading systems that work.their success is attributed to the fact that they fit the personality and belief system of the individuals using them.morever people who buy this system in a box are not able to put it together as it is originally supposed to be put together , chaning things in the process.as they are not utilising the system as planned that is why they are likely to fall short of success.
people are encouraged by Tharp to make their own systems based on their own values and beliefs.a system which is created keeping you in mind will prove very helpful when making decisions when you feel the time is right. By using such a system you protect yourself from having to make big decisions in the heat of the moment when your emotions are running the show and your logic seems to have taken a back seat.
Van Tharp teaches people how to use a system or strategy that has seven parts. These seven parts are as follows:
1. Set up conditions
2.describe your entry
3. Set your protective stop
4. Develop a re-entry strategy
5.have a plan to leave
6.effective position sizing techniques
7.designing systems for peculiar markets.
most people claim that their trading is successful after reading Dr Tharp. trading is made more of a logical practise rather then an emotional one due to Tharp's books which help in eliminatiing fear.
